Millions of auto-enrolment savers face 'affordability crisis'

Additional budgeting tools needed

Jenna Towler
clock
Ian McKenna: "It is crucial pensions and tech firms develop and deliver digital tools and services that will help consumers."
Image:

Ian McKenna: "It is crucial pensions and tech firms develop and deliver digital tools and services that will help consumers."

Workers on the average national wage will save more than 20% of their disposable income to their auto-enrolment pension by 2019 as contribution rates increase sharply in the coming years, research has found. 

F&TRC said additional tools were needed to help average earners budget for the impending contribution increases. The first increase, from 1% to 3% of qualifying earnings is due to come into force in April....

To continue reading this article...

Join Professional Adviser

 

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Tap into our community intelligence through our regular Pro Adviser poll.
  • 
 Be the first to hear about our events and awards programmes.

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Stephen McPhillips: What next for the normal minimum pension age?

Stephen McPhillips: What next for the normal minimum pension age?

NMPA explained

Stephen McPhillips
clock 08 December 2021 • 4 min read
Three-quarters of advisers have transferred out of a DB pension

Three-quarters of advisers have transferred out of a DB pension

Latest Pro Adviser Poll results

Jenna Brown
clock 08 December 2021 • 3 min read
The trustees confirmed they are also still working on other exercises in the lead up to the new buyout date.

FCA warns firms advising British Steel members as scheme to exit PPF

Scheme to exit PPF

Hope William-Smith
clock 07 December 2021 • 2 min read